Strong volume growth boosts M&M’s Q4, sees urban demand revival in near term
M&M Q4 Results 2025: Strong Volume Growth Drives 20% Profit Rise, Urban Demand Revival Expected
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Anish Shah, Group CEO & Managing Director, M&M Ltd., discussing Q4 FY25 results
Q4 Financial Performance
Mahindra & Mahindra (M&M) has reported robust financial results for the fourth quarter of FY25, with both net profit and revenue showing impressive growth of approximately 20%. The company’s consolidated net profit reached ₹3,295 crore, while revenue from operations stood at ₹42,599 crore during the quarter.
Key Financial Metrics
- Net Profit: ₹3,295 crore
- Revenue: ₹42,599 crore
- Automotive Volume Growth: 20%
- Farm Equipment Growth: 23%
- Dividend Announced: ₹25.3 (506%) per equity share
Key Growth Drivers
The company’s impressive performance was driven by strong sales in both automobile and tractor segments, despite challenging market conditions. M&M achieved significant milestones in market share and margin numbers, particularly in the SUV segment, where growth exceeded the projected mid to high teens target.
Segment Performance
- SUV Growth: Exceeded mid to high teens target
- Tractor Segment: Highest ever full-year market share
- Farm Segment: 3-year CAGR of 9.3% in FY25
- EV Segment: #1 in revenue market share
Expansion Strategy
M&M has announced ambitious expansion plans to sustain its growth momentum. The company will establish a new greenfield plant primarily for passenger vehicles by FY28, addressing the current capacity utilization of over 90%. Additionally, M&M is planning to expand its electric vehicle portfolio into the European Union market.
Strategic Initiatives
- New Greenfield Plant: Planned for FY28
- Current Capacity: Operating above 90%
- Models at Full Capacity: 3XO and Thar Roxx
- EU Market Entry: Phased approach with right-hand drive EVs first
Market Outlook
Looking ahead, M&M anticipates a revival in urban demand, driven by various economic factors. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), highlighted that income tax relief and expected reduction in interest rates would likely boost urban sentiment and spending in the coming months.
Market Dynamics
- Urban Areas: Current stress with expected revival
- Rural Markets: Showing strong performance
- Inventory Levels: Under 30 days for passenger vehicles
- Growth Momentum: Strong in SUV and EV segments
As M&M continues to strengthen its position in both automotive and farm sectors, the company remains focused on building robust businesses that deliver significant stakeholder value. The combination of strong financial performance, strategic expansion plans, and anticipated market improvements positions M&M for sustained growth in the coming quarters.